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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Hanwha Solutions announced on May 12 that it will temporarily postpone its planned rights offering aimed at funding new business investments and repaying debt, just one day after regulatory pressure from the Financial Supervisory Service (FSS).
The company revised its securities registration statement, originally filed in March, changing all previously scheduled dates to “undetermined.” This includes the record date for new share allocation, initially set for May 14, as well as subscription and payment procedures that had been scheduled for late June.
The decision follows remarks made on May 11 by Hwang Sun-oh, Senior Deputy Governor of the FSS, who disclosed the rationale behind repeated requests for corrections to Hanwha Solutions’ filing. He noted that the company had failed to sufficiently explain whether alternative financing options existed beyond the rights offering and to provide concrete evidence supporting its optimistic earnings outlook.
Hanwha Solutions had initially announced a KRW 2.4 trillion capital increase plan in March, but faced shareholder backlash after revealing that approximately 60% of the proceeds would be used for debt repayment. In response to the regulator’s request for revisions, the company reduced the offering size to KRW 1.8 trillion through a board decision. However, the FSS rejected the revised filing again, prompting the latest postponement.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
https://www.alphabiz.co.kr/news/view/1065618482567794
This article is based on global economic content from Alphabiz, which distributes English-language news on Korean markets and companies to international audiences.
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